SHOULD I HAVE A

DURABLE POWER
OF ATTORNEY?
A Closer Look at a Durable Power of Attorney in
Oklahoma Its Different Types, Its Purpose
and Why It Should Be a Part of Every
Comprehensive Estate Plan
By Larry Parman
OKLAHOMA ESTATE PLANNING ATTORNEY



Should I Have a Durable Power of Attorney? www.ParmanLaw.com
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When you are engaged in the process of estate planning you should see a holistic
picture. Arranging for the transfer of your monetary resources is certainly part of
the equation. At the same time, you should prepare in advance for contingencies
that you may face during your twilight years.
INCAPACITY IS WIDESPREAD
Longevity is increasing, and this is great on the one hand. On the other hand,
people often become incapacitated late in their lives.
In the United States the average life span for people of all ages is 78 years, but
this expands when you are talking about a smaller sample size.
Once you reach the age of 65, it
is likely that you will live into
your 80s.
There are different causes of
incapacity. Sometimes people
become completely unable to
communicate due to
catastrophic illnesses. In
addition to this, there is the
matter of mental incapacity.
Alzheimer's disease is a huge threat to our nation's elders. As you get older, the
likelihood of contracting Alzheimer's increases. Upwards of 45 percent of people
who are at least 85 years old have been diagnosed with Alzheimer's disease.
Those who are suffering from Alzheimer's typically experience dementia. If you
were to experience Alzheimer's induced dementia, you may find it difficult to



Should I Have a Durable Power of Attorney? www.ParmanLaw.com
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grasp concepts and make decisions.
When you add the Alzheimer's statistics to the other causes of incapacity, you
can see that incapacity is quite common among elder Americans.
GUARDIANSHIP OR CONSERVATORSHIP
Who would make decisions on your behalf if you were unable to make them for
yourself due to incapacitation? The answer is that it is up to you.
If you do nothing, the state could be petitioned to appoint a guardian or
conservator to manage your affairs in the event of your incapacitation. The court
could choose a representative that you would not have chosen when you were of
sound mind.
In addition to this, family members can disagree with regard to the appropriate
course of action. This can create an acrimonious family dynamic during a
difficult time when your loved ones should be pulling together to support one
another.
You can prevent a guardianship or conservatorship and take the matter into
your own hands by creating an incapacity plan.
DURABLE POWERS OF ATTORNEY
An incapacity plan will typically include a document called a durable power of
attorney. With a durable power of attorney you name an agent or attorney-in-
fact to act on your behalf in the event of your incapacitation.



Should I Have a Durable Power of Attorney? www.ParmanLaw.com
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A power of attorney that is not designated as durable would not remain effective
if the grantor was to become
incapacitated. Durable
powers of attorney do
remain active upon the
incapacitation of the grantor.
This is why durable powers
of attorney are used for
incapacity planning
purposes.
The person who is empowered to act on your behalf is called an agent or
attorney-in-fact. You may want a particular person to handle your financial
affairs, but you may not want this individual to make your health care decisions.
Many people execute two different durable powers of attorney: one for health
care matters, and one for financial matters. If you go this route, you could name
two different respective attorneys-in-fact.
It should be noted that a durable power of attorney for health care is called a
health care proxy in some jurisdictions.
When you create a durable power of attorney, it is typically going to go into
effect immediately. You may not want to give decision-making power to your
agent right away.
If you feel this way, you could potentially create a springing durable power of
attorney. A springing durable power of attorney does not go into effect until and
unless the grantor becomes incapacitated.




Should I Have a Durable Power of Attorney? www.ParmanLaw.com
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CHOOSING AN AGENT
You should be very discerning when you choosing an agent or attorney-in-fact.
Consider the age of the person that you choose, because he or she may not be
called upon to act until many years in the future.
There is also the matter of geography. If you live in Oklahoma City and your
health care agent lives in Hawaii, there is a distance problem. Quick action may
be necessary, and the agent may have to make a series of decisions over an
extended period of time.
CONCLUSION
Incapacity is common among people who have reached an advanced age. You
must be proactive about naming your own representatives to act on your behalf
in the event of your incapacitation.
This is done through the execution of durable powers of attorney. If you do not
have these important incapacity planning documents in place, consult with a
licensed estate planning attorney.
Your lawyer will assist you as you create an effective plan that comprehensively
prepares you for the eventualities of aging.
REFERENCES
American Bar Association
http://www.americanbar.org/groups/real_property_trust_estate/resources/est
ate_planning/power_of_attorney.html


Alzheimer's Association
http://alz.org




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About the Author
Larry Parman

After helping his own family deal with a lengthy probate and a battle with
the IRS following his fathers death in a farm accident, Larry made a
decision to help families create effective estate plans designed to reduce
taxes, and minimize legal interference with the transfer of assets to ones
heirs, and protect his clients assets from predators and creditors.
Following a dozen years in the investment banking and financial services
business, in the mid-1980s Mr. Parman formed a law firm that gives
families the peace of mind that comes from having created a premier
estate and financial plan.

After forming his law firm in 1984, he offered a series of public and
private seminars to inform the public about using a Living Trust as the
foundation of a familys estate plan. Today, Parman & Easterday is one of the leading business and
estate planning law firms in the Midwest. The firms primary focus is on business and estate planning,
elder law, asset protection, and providing effective estate planning solutions for clients. Today, the
firms premier estate plan design is referred to as a Legacy Wealth Plan.

Mr. Parman is a frequent guest on the radio and can be seen on television talk shows explaining the
importance of proper estate planning. Prosperity Productions selected Mr. Parman as a featured
speaker in a nationally-recognized educational video on Living Trusts. He is the author of numerous
published articles on financial and estate planning matters and the co-author of two books, Estate
Planning Basics: A Crash Course in Safeguarding Your Legacy and Guiding Those Left Behind in
Oklahoma: Settling the Affairs of Your Loved Ones.

Mr. Parman is a member and Fellow of the American Academy of Estate Planning Attorneys. He is also
a member of the Oklahoma and Missouri Bar Associations, the American Bar Association, and the
Oklahoma City Estate Planning Council.



www.ParmanLaw.com
OVERLAND PARK, KS
10740 Nall Avenue, Suite 160
Overland Park, KS 66211
Phone: (913) 385-9400
Fax: (913) 385-9422

OKLAHOMA CITY, OK
13913-B Quail Pointe Drive
Oklahoma City, OK 73134
Phone: (405) 843-6100
Fax: (405) 917-7018